One single thought and one only:
“Damn, I hope it stays low till my 401k contribution kicks in from Friday’s paycheck.”
Nope. When I see a market go down, I think one thing only. “Time to buy!”
That’s really the only thought to have.
Don’t panic if you’re under 60. There is plen-TEE of time for the market to rebound.
I checked the price of mutual funds in my 401K plan for the last few paychecks. I get paid every two weeks and it seems that my S&P fund was buying shares at over $90 a few weeks ago and is now getting them at ~$85. But I also have to remember that when I started this job in late 2005, those same shares were under $75. So I’m still doing quite ok as long as I hold steady with my contributions. (And why is it a year and a half later and I still think of this gig as my ‘new’ job?)
I only wish I had something extra to give to my IRA rollover funds to buy into them. I am thinking of liquidating an REIT fund I should have sold 4 months ago. I am still making 10+% over the 3 years I’ve had those shares, but I could have had over 20% if I sold them when the idea first popped into my head. Oh well, I would have taken that cash and bought into a closed small-cap fund and watched those share prices sink as well, so it’s 6 of one and half a dozen on the losses there. So I am going to wait till after the new year. I will have two dividend payouts then and a rebalance to exit the REIT at that time seems reasonable.
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{ 7 comments… read them below or add one }
I need to stop getting heartburn every time my little stock widget on my desktop shows all red, but when my funds go down 3% in a day two days in a row, I begin to wonder.
Rob- BUCK UP. It’s a small ping. Just keep adding to your nest egg and let dollar cost averaging work for you. And take a look at how far you’ve come. That will also relax your breathing. If I didn’t have the historical records to view, I’d be kind of freaked out since I took a $2K nosedive with current valuations. But overall, I’m still in positive returns and that, my dear, is the silver lining.
I just bought a few shares of AIG this morning with the marketing being so low. I hope it bounces back sooner than later, haha.
Hi Mapgirl! I couldn’t agree with you more. I try to make an IRA contribution whenever I hear that investors are panicking.
BTW– when is the next DC happy hour??
Your absolutely right, it is the time to buy. I say the same thing about the housing market.
Steve Herman
http://www.financialadvantages.com
Asset Gatherer- Check your email for current details. Sorry, but it’s moved to the former DC city of Arlington for August.
Amen! I am all about dollar-cost averaging! Hooray for downturns when you’re young.